Jobless? This is all your fault

As the coalition ruins livelihoods by imposing hundreds of thousands of job cuts under the slogan "we are all in this together," millionaire Prime Minister David Cameron announced a "reform" package that unions argue blames the unemployed for being jobless.

Announcing the Welfare Reform Bill alongside Work and Pensions Secretary Iain Duncan Smith, Mr Cameron said: "The benefit system has created a benefit culture. It doesn't just allow people to act irresponsibly, but often actively encourages them to do so."

He stated that the Con-Dems' policies were "tough, radical but fair."

Key changes include drawing benefits together under a single Universal Credit, creating a Work Programme to help the long-term unemployed into jobs and new incentives to "ensure that work always pays."

Housing Benefit will be restricted to cover only the cheapest 30 per cent of homes in an area.

But the coalition was forced to backtrack on proposals announced in last year's emergency budget to cut housing benefit by 10 per cent for anyone on jobseeker's allowance for more than a year.

According to Mr Cameron the plans would see £5.5 billion slashed from the Welfare Bill in real terms over the next four years by limiting housing benefit, reforming tax credits and taking child benefit away from higher-rate taxpayers.

But unions attacked the coalition for punishing the unemployed and impoverished for their own misfortunes.

"Long-term unemployment has doubled not because of a sudden increase in workshy scroungers, but as an inevitable result of economic policies based on cuts that destroy growth," said TUC general secretary Brendan Barber.

"Making low-income working families thousands of pounds worse off through welfare cuts over the next two years using the claim that they will be slightly better off in 2013 is an absurd argument that will ring hollow as families suffer the toughest income squeeze for nearly a century."

He added that the welfare changes were "drastic" and would not stem the rise in unemployment.

PCS general secretary Mark Serwotka said: "You can't force people into jobs that aren't there. Instead of denigrating some of the most vulnerable people in our society and blaming them for being sick, disabled or unemployed, the government should be creating jobs - not cutting them - and properly supporting people with the help and training they need."

Charities Macmillan Cancer Support, Disability Alliance and Scope argued that the impact of the reforms could push whole families with illnesses or disabilities into poverty.

Welfare Reform: key points

Benefits to be brought under one Universal Credit, which will also ensure those coming off welfare or increasing hours can keep 35p of benefits for every extra £1 they take home.

Housing Benefit will be restricted to cover only the cheapest 30 per cent of homes in an area with limits on the amount which can be claimed by families of a particular size.

Unemployed people who refuse to accept a job or voluntary work will lose benefits for three months on the first occasion, rising to three years if it happens three times.

A review of sickness absence to end what Mr Cameron described as the "sicknote culture"

Cutting £1 billion by replacing Disability Living Allowance (DLA) with a face-to-face assessment under Personal Independence Payment (PIP), raising fears from charities that hundreds of thousands of disabled people will lose support.